ExxonMobil discovers oil and gas in Argentina shale well; expands presence in Permian shale in US

22 May 2014

ExxonMobil Exploration Argentina, jointly with Gas y Petróleo del Neuquén, has discovered oil and gas in an unconventional shale well in Neuquén Province of Argentina. Located in the liquids-rich area of the Vaca Muerta play, the Bajo del Choique X-2 well was drilled to a total measured depth of approximately 15,000 feet (4,570 meters). The horizontal leg of the well extends for 3,280 feet (1,000 meters).

The well was completed in the Vaca Muerta formation and flowed at an average rate of 770 barrels of oil a day on a 12/64 inch choke in its first flow test. Data analysis and additional studies are being conducted to fully evaluate this discovery. Appraisal wells will also need to be drilled before a commerciality decision can be made.

Not all shales are alike, so our first ExxonMobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquén Province holds great promise as a liquids-rich unconventional resource for Argentina.

— Stephen M. Greenlee, president of ExxonMobil Exploration Company

Permian. Separately, ExxonMobil announced increasing its liquids-rich Wolfcamp acreage in the Permian shale basin in the US.

The company executed an agreement to add nearly 26,000 acres to its US oil and natural gas portfolio managed by subsidiary XTO Energy Inc., through a non-monetary exchange with LINN Energy, LLC. Virtually all of the acreage is located within the portion of the Midland Basin that is most prospective for horizontal Wolfcamp and Spraberry development. In exchange, LINN Energy will receive a portion of XTO’s interest in the Hugoton gas field in Kansas and Oklahoma.

This Midland Basin leasehold is in a prolific area where we expect rapid, profitable development of multiple horizons in the Wolfcamp and Spraberry formations. With this agreement and our previously announced transaction with Endeavor Energy Resources, we will increase our operated position in the Midland Basin Wolfcamp core to roughly 100,000 net acres and our total position in the basin to 300,000 net acres. This brings our leasehold position in the Permian Basin to over 1.5 million acres and in excess of 90,000 net barrels of oil-equivalent daily production.

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